PNB reports Q3 net loss of Rs 492 crore as provisions mount

State-owned Punjab National Bank (PNB) on Tuesday reported a standalone net loss of Rs 492 crore for the October to December quarter compared with a profit of Rs 246 crore in the same period of last financial year.

The loss came on account of higher provisioning for non-performing assets (NPAs). The lender said provisions for the quarter jumped by 73.25 per cent to Rs 4,445 crore in Q3 FY20 from Rs 2,566 crore in Q3 FY19.

"Further out of the unamortised amount of Rs 2,284.32 crore up to quarter ended September 30, an amount of Rs 887.57 crore has been charged to profit and loss account during the quarter and remaining amount of Rs 1,396.75 crore has been carried forward to subsequent quarters," it said in regulatory filings.

"Total amount of remaining provision to be carried over to the subsequent quarters is Rs 1,575.88 crore," it added.

PNB's Managing Director and CEO S S Mallikarjuna Rao said he is confident that due to this provisioning, the pain will not be transferred to the quarter ending in March.

The net interest income in Q3 FY20 was up 1.5 per cent at Rs 4,355 crore versus Rs 4,290 crore year-on-year. The bank's asset quality as a percentage of total advances too improved slightly.

Gross NPAs came in at 16.3 per cent as against 16.76 per cent in the previous quarter. The gross NPAs stood at Rs 76,809 crore versus Rs 79,459 crore in the previous quarter.

Net NPAs came in at 7.18 per cent versus 7.65 per cent in the previous quarter.